<PAGE>
THE MAINSTAY FUNDS
Supplement dated August 8, 1997 to the
Prospectus dated May 1, 1997
The Prospectus is amended as follows:
1. In light of the limited market for convertible securities and the size of
Convertible Fund, the Fund's Investment Adviser and Board of Trustees
believe that it is in the best interest of the Fund and its shareholders to
limit the Fund's cash inflow in order to better enable the Fund to continue
to find appropriate investment opportunities. Accordingly, effective June
2, 1997, Convertible Fund will not offer or accept purchase orders from new
investors. Existing shareholders of other MainStay Funds will not be
permitted to make exchanges into Convertible Fund after June 2, 1997.
Shareholders of record, as of May 30, 1997, will continue to be allowed to
make additional purchases of shares or redeem shares. The Board of Trustees
and management may elect to open the Fund in the future if they determine
it appropriate to do so.
2. In the section titled, "Tell Me The Details - The Trust" on page 52, the
second sentence of the second paragraph beginning "As of April 1, 1997..."
is hereby deleted and replaced with the following:
As of April 1, 1997, NYLIFE Distributors Inc. owned a controlling interest
(as that term is defined under the 1940 Act) of the New York Tax Free Fund
Class A shares, International Equity Fund Class A shares, International
Bond Fund Class A shares and Strategic Income Fund Class B shares and New
York Life Insurance Company General Account owned a controlling interest of
the Strategic Income Fund Class A shares.
3. On July 28, 1997, the Board of Trustees approved a number of proposals to
be presented to shareholders at a special meeting of shareholders of The
MainStay Funds to be held on October 24, 1997, or at any adjournment
thereof, for the purpose of electing Trustees of the Trust; approving a
management agreement between the Trust on behalf of each of the Funds and
MainStay Management, Inc. (the "Manager"); approving sub-advisory
agreements between the Manager and MacKay-Shields Financial Corporation
(for each Fund other than Equity Index Fund) and between the Manager and
Monitor Capital Advisers, Inc., (for MainStay Equity Index Fund) advisers
to the Funds; approving an amendment to the Plans of Distribution pursuant
to Rule 12b-1 for Class B shares of each of the Funds, other than Equity
Index Fund which does not offer Class B shares, Money Market Fund which
does not have a Rule 12b-1 Plan and Strategic Income Fund; to eliminate or
revise certain fundamental investment restrictions of the Funds; to ratify
the selection of Price Waterhouse LLP as independent certified accountants
of the Trust; and, to transact such other business as may properly come
before the Meeting or any adjournment thereof. The amendment to the Plans
of Distribution will change the method of calculating fees under the Plans
and will have the effect of increasing the distribution fee actually
payable to the Distributor up to the existing maximum fee. If the proposals
are approved by the shareholders, a revised prospectus, including the
adopted changes will be mailed to shareholders of the Trust.
